NAMIC Board Member Darwin Copeman, president and CEO of Jewelers Mutual Insurance Company, will be testifying on behalf of NAMIC tomorrow, Sept. 11, at 10:00 a.m. EDT, at a hearing entitled, "TRIA at Ten Years: The Future of the Terrorism Risk Insurance Program," on the anniversary of the September 11 terrorist attacks.
Copeman will explain to the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity that, 11 years after the 9/11 attacks, the threat of terrorism remains an uninsurable risk, and no self-sustaining private market for terrorism risk coverage is likely to develop. With so many new members of Congress taking office in recent years and an increased focus on every dollar of federal spending, Copeman's testimony will outline how the TRIA program has worked, successfully fostering the development of terrorism risk coverage in areas of high-risk .
Passed in the wake of the 9/11 attacks, the Terrorism Risk Insurance Act is an effort by the federal government to create an environment in which insurance companies can offer terrorism coverage and share the country's exposure to a potentially devastating attack. It creates this environment through a federal backstop that sets a ceiling on potential insured losses, thereby reducing the fear that a worst-case terrorist event could render an insurer insolvent and allowing insurers to quantify a risk that is at bottom, uninsurable.
The TRIA program is set to expire at the end of 2014 and tomorrow's hearing is the beginning of a reauthorization debate that will be long and potentially contentious. NAMIC will continue leading the charge on educating politicians about the importance of maintaining a long-term program going forward.
Watch the hearing at 10:00 am EDT tomorrow here.
Posted: Monday, September 10, 2012 2:34:23 PM. Modified: Monday, September 10, 2012 2:35:36 PM.
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